Appointment of Director

Director of a company are living person entrusted by the shareholders to manage the affairs of the company. Retry Global Solutions offers an easy process for appointment of director.

Price starts from ₹ 8499/-

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Director of a company is a person elected by the shareholders for managing the affairs of the company as per the Memorandum of Association and Articles of Association of the company. Since a company is an artificial judicial person created by law, it can only act through the agency of natural persons. Thus, only living persons can be Directors of a company and the management of a company is entrusted to the Board of Directors. Appointment of Directors can be required for a company from time to time based on the requirements of the shareholders of the business.

To appoint a director, the person proposing to become a Director must obtain a digital signature certificate (DSC) and director identification number (DIN). DIN can be obtained for any person who is above the age of 18. The nationality or residency status of the DIN applicant does not matters. Hence, Indian Nationals, Non-Resident Indians and Foreign Nationals can obtain DIN and be appointed as Director of a company in India.

Types of Director in a Company

Managing Director

Executive Director

Ordinary Director

Additional Director

Alternate Director

Managing Director is a Director, who by virtue of Articles of Association of a company or an agreement with the company or a resolution passed in its general meeting, or by its Board of Directors, is entrusted with substantial powers of managed of affairs of the company.

Executive Director is a Director, who is in full-time employment of the company. Hence, executive directors are deeply involved with the management of the company and managing affairs of the company.

Ordinary Director means a simple Director who attends the Board Meetings of a company and participates in the matters put before the Board of Directors. These Directors are neither whole-time Directors or Managing Directors.

Additional Director is someone appointed by the Board of Directors between two annual general meetings subject to the provisions of the Articles of Association of a company. Additional Directors can hold office only upto the date of next annual general meeting of the Company.

Alternate Director is someone appointed by the Board of Directors in a general meeting to act for a Director called the original director during his/her absence for a period of not less than three months. Generally, alternate Director are appointed for a person who is a Non-Resident Indian or Foreign Collaborators of a company.

What are the Documents required for Add Directors?

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PAN Card

Mandatory for an Indian Applicant

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Passport

Mandatory for a foreign Applicant

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Residence Proof (Any One)

Passport, Voter Identity Card, Driving License, Electricity Bill

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Photograph

For New Director

What Includes in this package?

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Checking DSC Availability

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Preparation of Board Resolution

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Making ROC Payment

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Name Approval Letter

What is the process for Add Directors?

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Apply for DSC

As the entire procedure stays on the web, so before anything, individual proposing to wind up chief requires a DSC.

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Apply for DIN

That’s the compulsory necessity for getting to be executive in an organization. A man must have a DIN to wind up plainly an executive in organization and for the same DIR – 3 is documented online to get the DIN for a man.

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Documentation Preparation

There are sure records that are required to get ready for arrangement of executive. The Documents are as per the Director of organization.

FAQs?

What happens to the alternate if the director who appointed them ceases to be a director?

Directors have a number of legal responsibilities and duties to the company, primarily stemming from a general duty to act in good faith in the best interests of the company. More specifically, Directors are required to act within the powers conferred upon them by the company’s Articles of Association; they must promote the success of the company and exercise reasonable skill and care and diligence in their particular area of management; they must avoid conflicts of interest (save those declared and approved at a general meeting) and they must not accept personal benefits from third parties without authorization at general meeting (subject to any alternate provisions within the Articles of Association).

An alternate director is a person appointed by a director to act on their behalf when that director is temporarily absent or otherwise unavailable to fulfil their duties – such as when the director is overseas.
The powers of the alternate director will depend on will depend on the company’s Constitution – and what the alternate was appointed to do. If company has a Constitution, the alternate director has all of the rights and powers of the director – including voting at meetings – and any power exercised by the alternate is just as effective as if exercised by the director who appointed them. If there are any conditions which apply to the director who is appointing the alternate, then these also apply to the alternate director.
A director should only appoint an alternate director if they are, or expect to be, temporarily unable to act as a director. If they are, or expect to be, permanently or indefinitely unable to discharge their duties, they should resign.

Generally speaking, a person is appointed as a director of a proprietary company by either:

The directors passing a resolution – provided that in most cases the shareholders must subsequently confirm the appointment; or

The shareholders passing a resolution to appoint the person as a director of the company.

You will need to review your Constitution to determine the time period for the shareholders to confirm the appointment of a director appointed by a resolution of the directors.

Any of the directors may appoint an alternate for any period the director thinks fit – but this must first be approved by a majority of the other directors. The managing director may not appoint an alternate managing director.
An alternate can only be appointed by a director with the other directors’ approval.

If the appointing director ceases to be a director, their alternate will automatically cease to be an alternate for that director. The alternate is not required to resign or be removed as an alternate. If they are also an alternate for any other director, they will remain as an alternate for that other director.
Even though the alternate will automatically cease to be an alternate director, the company must notify ASIC of both the director ceasing to be a director and the alternate ceasing to be an alternate director for that director.